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Monthly Structure Change 2024-7

✅ Add $XLM $ATOM

❎ Removed $WIF $IMX

🔄 Rebalance Turnover 4.20%

At last, the market cap of three tokens we have been anticipating for a long time has reached the threshold of the Top 30. They will not stop there! We have added Fetch.AI ($FET), Render Token ($RNDR) and Immutable X ($IMX). Very good for diversification of the Strategy with AI, Metaverse, NFT and Gaming. But we cannot ignore the meme craze of late. We add Pepe ($PEPE) as the third meme coin in the Triaconta Top 30. Render token facilitates distributed GPU rendering for awesome graphics in current and future metaverses and games. Immutable X allows developers to build Web3 games at gigantic scale with advanced gameplay mechanics, allows anyone to mint millions of NTFs and combines high performance with low cost.

We say goodbye to Injective (-35% since addition) and Lido DAO (-20% sa) with some loss, and Aave (+58% sa) with some gain. We get a little nostalgic to see Vechain go, a Top 30 member since february 2020, but we know we made a 450% profit since then.

Monthly Structure Change 2024-6

✅ Add $PEPE $RNDR $WIF $IMX

❎ Removed $FIL $ATOM $XLM $CRO

🔄 Rebalance Turnover 7.45%

2/3

Detailed Analysis of the First Correlation Table:

Here is the annual correlation analysis I conducted for the June 2024.

I usually don't publish this, but some people are interested in learning and those copying this strategy likely want to see how their funds are managed properly.

Anyway, I will rebalance the portfolio in a few hours once I finish my complete work as I prepare monthly reports for myself to review periodically.

in risk mode: Assets that have a higher return than the general market are selected. Then the risks are reduced.

Overview:

The first table presents the correlation between various assets, indicating how closely their price movements are related. High correlation (values close to 1) means the assets tend to move in the same direction, while low correlation (values close to 0) indicates more independent movements.

Key Observations:

Highly Correlated Assets

$SOL and $AVAX : High correlation of 82.58%.

$NEAR and $AVAX : High correlation of 81.20%.

$AR and $FET : High correlation of 87.21%.

,,etc

Low Correlation Assets:

$SOL and $JASMY : Low correlation of 21.68%.

$ICP and $AR : Low correlation of 26.20%.

$FET and $IMX : Low correlation of 50.50%.

,,etc

For diversification, it's beneficial to include assets with low correlations in your portfolio. This helps reduce overall risk.

Diversification Strategy:

Combining SOL and JASMY, ICP and AR, or FET and IMX could provide better risk management due to their low correlation.

Overall Assessment:

The selected assets to offer a good mix, but individual asset fundamentals and market trends should also be considered. 

Diversifying with low-correlation assets is key to minimizing risk.

Therefore, the correlation will also be evaluated at the sector level.

Continue reading the next post :)

3/3

Detailed Analysis of the Second Correlation Table:

Overview:

The second table shows the correlation between different sectors and market indices. The sectors are:

Blockchain Infrastructure sector: Includes $SOL , $AVAX , $NEAR , $ICP , $FTM , $IMX , $STX , $INJ

Infrastructure Applications sector: Includes $AR , $FET , $JASMY , $AGIX , $RNDR .

Market Indices: TOTAL, TOTAL2, TOTAL3, TOP 10 (TOTAL-OTHERS), OTHERS.

Key Observations:

Correlation with Market Indices:

TOTAL and Blockchain Infrastructure sector: 77.14% correlation.

TOTAL and Infrastructure Applications sector: 92.54% correlation.

Intra-Sector Correlation:

High correlation within the Blockchain Infrastructure sector (above 84%).

Lower correlation within the Infrastructure Applications sector (below 80%).

Sector Analysis:

Blockchain Infrastructure sector: Moderate correlation with market indices suggests some diversification benefit.

Infrastructure Applications sector: High correlation with market indices indicates significant market trend dependency.

Risk Diversification:

Blockchain Infrastructure sector: Moderate correlation with market indices makes it useful for diversification.

However, high intra-sector correlation suggests these assets tend to move together.

Infrastructure Applications sector: High correlation with market indices implies these assets are more susceptible to market trends. However, lower intra-sector correlation provides some intra-sector diversification.

The combination of assets from the Blockchain Infrastructure and Infrastructure Applications sectors can provide a balanced portfolio with a good mix of diversification and market exposure. For example, combining assets like SOL (Blockchain Infrastructure) and AR (Infrastructure Applications) may reduce overall portfolio risk.

This is a small part of what I do behind the scenes.

Good luck!

🔵 Mr Jaradat Portfolio

A systematic strategy based on my mathematical model to determine the optimal position for taking additional risks, which is mainly based on the analysis of the trend, momentum and correlation of the assets in this crypto strategy with market indices.

Exposure in [Risk-on] mode

▪️ Blockchain Infrastructure sector 50%

▪️ Infrastructure applications sector 50%

Exposure in [Risk-off] mode

▪️ Blockchain Infrastructure sector 25%

▪️ Infrastructure applications sector 25%

🔵The Strategist

@MomenJaradat